All parties will court consumers when Parliament returns

Canadian consumers will take centre stage when Parliament resumes. It is expected that a bill of rights for airline passengers will be introduced.

Photograph by: Aaron Lynett/ National Post/Files
, Postmedia News

OTTAWA – A battle for the hearts and minds of Canadian consumers will take centre stage when Parliament resumes on Oct. 16.

The Conservative government is expected to unveil what it is already dubbing a “consumer-first” agenda, while federal opposition parties are positioning themselves as having the interests of the middle class closest to heart.

Here is what you need to know:

Why does this concern me?

Ever forked over a large percentage of your pay for a same-day loan? Or wondered what “MER” means on your investment report? Ever been unable to afford milk, chicken or cheese? Or wondered why you seem to be working harder, but seemingly not getting any further ahead?

Ken Whitehurst, executive director of the Consumer Council of Canada, says while big business has long had the money and influence to get what it wants from federal governments, Canadian consumers are often overlooked.

He says that’s why Canadians pay more than necessary for airline tickets, or are struck trying to negotiate and navigate confusing purchase contracts for cellphones and Internet.

Finn Poschmann, vice-president of research at the Toronto-based C.D. Howe institute, says many areas that are “sticking points” for consumers are under some type of regulation from the federal government, such as telecommunications, airlines and the food sector.

So what are the federal Conservatives promising?

The upcoming auction of wireless radio waves in January is an example of what the federal government says it is doing to help Canadian consumers, by injecting more competition into the telecommunications industry.

And Industry Minister James Moore last month said his government is “just getting started.”

Details beyond that will be laid out in the Oct. 16 throne speech.

However, the government has previously promised, hinted at or leaked plans to bring in a bill of rights for airline passengers; a pro-consumer code for the financial industry; rein in payday loan services; and tackle price discrepancies between Canada and the U.S.

This is on top of efforts to revamp the food safety system and implement anti-spam and copyright legislation.

The government has also indicated the country’s big telecom companies aren’t the only group with whom it will do battle. It isn’t saying which industries it is considering, but the airlines are the leading contender.

Does the government’s plan make sense?

Consumer groups and others hope the government is serious about helping consumers, pointing out that, in theory, politicians should be less beholden to businesses after changes to the election law several years ago banned corporate donations.

Yet there is sharp division over the best course of action.

Whitehurst says helping consumers is about more than just lowering prices; it’s also about minimum service standards, increased transparency and the elimination of confusing contracts.

“Consumer representation is not all about just getting people the lowest price,” he says. “It’s about helping consumers participate fairly in the economy.”

Others say the only real solution is to facilitate real competition by removing protections and regulations on foreign ownership and prices, and letting markets decide.

They argue that dictating minimum standards or micro-managing the market will ultimately backfire by actually raising prices and confusing things more.

“You can micromanage how the airlines show their ticket prices, but how does that advance competition and lower ticket prices?” says Mark Milke of the free-market Fraser Institute.

“The big picture is you’re going to get better customer service and you’re going to get better prices in a competitive market. That’s the thing the government needs to keep its eyes on and not get lost in minutiae.”

Of course, the government is also having to balance a desire for increased competition with pressure to protect existing Canadian industries, jobs and the overall economy.

So the government is just trying to win my vote?

Former NDP leader Jack Layton used to say Canadians are more concerned with decisions that affect the kitchen table than the boardroom table, and Poschmann says it’s a lesson the Conservatives appear to have learned.

“Voters like telecom competition and competing services,” he says, “and the government has glommed onto that.”

“Consumers are feeling very oppressed,” says Whitehurst, adding the problems “have been building up for some time.”

The question is whether the government is looking to take only politically expedient decisions, or whether it will also take on some of the more complicated and controversial issues.

“I think the government’s economic heart is in the right place,” Poschmann says. “And I also think that politics and populism tend to intrude in getting from here to there.”

The clearest example of this for some is supply management, which involves federal protections for the country’s dairy, chicken and egg industries – ensuring higher revenues for producers, but also higher prices for consumers.

“If you wanted to choose just one thing that the federal government could actually do something about very easily, it would be supply management,” Poschmann says. “It turns some of these staples into luxury goods for some families.”

Successive governments, including the Conservatives, have resisted dismantling the system for fear of losing votes from rural Ontario and Quebec.

It’s also been noted that the Conservative Party has been trying to literally cash in on its fight with the telecom industry by asking supporters for donations to continue the battle.

“The rhetoric to this point is certainly not encouraging,” says Poschmann.

What are federal opposition parties saying?

The NDP have questioned why, if they stand with consumers, the Tories twice voted against a proposed air passenger bill of rights, and increased taxes on a wide range of imported goods in the last budget.

New Democrats also note the government has made parking at hospitals, schools and municipal lots more expensive by adding GST and HST to the price, and accuse it of ignoring credit card and ATM fees.

The NDP says it will introduce caps on credit card and ATM fees.

Liberal leader Justin Trudeau has tried to position his party as champions for the middle-class, and says the government’s plans fall far short of a real economic vision for the country.

The Liberals, however, won’t lay out their plans for consumers until closer to the 2015 federal election.

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